09-23-24 City Council Agenda Packet

Home Search

CITY COUNCIL REGULAR MEETING STAFF REPORT AGENDA ITEM 3C STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: September 23, 2024 TOPIC: Consider Resolution No. 24-123, Canceling the 2025 Levy for G.O. Capital Note, Series 2016A VOTE REQUIRED: Simple Majority INTRODUCTION Minnesota Statutes require the county auditor maintain bond registers that have information relating to any bonded debt issued by a local taxing authority within the county. For bonds that have tax levies pledged for payment of all or part of the debt, the county auditor must certify that any required tax levies have been made. The county is required to levy the amount originally certified and scheduled, unless the taxing authority passes a resolution canceling the debt service levy. BACKGROUND In February 2016, the City Council authorized the issuance of a capital note payable to the City of Circle Pines to finance the City of Lino Lakes' share of the cost of capital equipment to be used by North Metro Telecommunication Commission (NMTV). At the time of issuance, an annual tax levy was included in the bond documents for the payment of future debt service. It was fully anticipated that the annual debt service would be covered by the collection of fee revenues from NMTV and that the tax levy would be evaluated and canceled on an annual basis. While the required tax levy extended into taxes payable 2025, the final debt service payment on the G.O. Capital Note, Series 2016A was made to the City of Circle Pines in 2024 with the use of fee revenues from NMTV. Since the debt has been paid in full and the levy has been canceled each year the debt has been outstanding, the debt levy should be canceled for taxes payable 2025. RECOMMENDATION Staff recommends Resolution No. 24-123, Cancelling the 2025 Levy for G.O. Capital Note, Series 2016A. ATTACHMENTS Resolution No. 24-123